High Court Fast-Tracks Case Seeking Details On Government Funding For Dangote Refinery

Date:

NAIROBI, Kenya – The High Court has certified as urgent a petition seeking disclosure of details surrounding the Kenyan Government’s proposed involvement in the Dangote East Africa Petroleum Refinery project in Lamu.

Justice David Mburu on Tuesday, October 6, directed that the case be given priority, opening another legal challenge over the planned refinery days after its September 30 groundbreaking.

The petitioner, an activist, is seeking information on whether public funds, land, tax incentives, guarantees or other government resources will be committed to the project.

Petitioner Seeks Details Of Government Investment

The case seeks records detailing the terms, valuations, approvals and decision-making processes behind any proposed government investment in the refinery.

A central issue is Kenya’s reported plan to acquire a 10 per cent stake in the project through public assets and resources associated with the National Investment Fund (NIF).

The petitioner wants the government to disclose records relating to the fund, including its legal framework, investment mandate, decisions, feasibility studies and financial models connected to the refinery project.

He has also asked for the preservation and release of documents relating to agreements, financing proposals, due diligence, valuations, licences, environmental assessments and public participation.

Court Declines Temporary Restrictions

The application had also sought temporary restrictions on any new non-routine government commitments to the refinery pending determination of the case.

However, the court did not grant the request at this stage.

The petitioner is instead seeking disclosure of information that would clarify the nature and extent of the government’s proposed participation in the project.

CMA Asked To Disclose Fundraising Details

The Capital Markets Authority (CMA) has been named as an interested party in the proceedings.

The petitioner is asking the regulator to disclose whether it has handled any fundraising exercise or investment offer connected to the proposed refinery.

The case could therefore shed further light on the financial structure and proposed public-sector participation in the project.

Parties Given Seven Days To Respond

Justice Mburu directed the petitioner to serve the respondents and interested parties within two days.

The respondents and interested parties will then have seven days to file their responses.

The matter will return to court on November 12 to confirm compliance with the directions and for further instructions.

Fresh Legal Questions Over Lamu Refinery

The petition comes days after the Consumers Federation of Kenya (COFEK) separately approached the Public Private Partnerships Petition Committee seeking details of the proposed government stake in the refinery.

COFEK has raised questions over a reported Ksh65 billion government stake, a reported Sh21.5 billion seed allocation and approximately 7,000 acres associated with the project.

The refinery is also facing a separate land dispute involving residents of Chandavai in Lamu County.

The residents are challenging the use of land earmarked for the project, citing ancestral claims, compensation and resettlement concerns.

The Environment and Land Court in Malindi is scheduled to hear that case on October 14.

The latest petition adds another legal process to scrutiny of the proposed Dangote refinery, with questions now extending to the project’s financing, public resources, government participation and land arrangements.

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